IMF Praises Jamaica’s Fiscal Progress

The International Monetary Fund is again showering Jamaica with praise for its fiscal progress.

This follows its latest Article Four consultation, which took place between April 30 and May 7.

The consultation was carried out by a team led by Deputy Division Chief in the IMF’s Fiscal Affairs Department.

Chevon Campbell tells us more.

Jamaica does not currently maintain a borrowing arrangement with the International Monetary Fund, IMF.

But the country still maintains a precautionary stand-by facility in case of a major economic shock.

Additionally, the IMF regularly carries out Article Four consultations with all member countries.

As part of its latest assessment, the Fund says over the last decade, Jamaica has successfully reduced its public debt, firmly anchored inflation and inflation expectations, and strengthened its external position.

The multi-lateral says the country has built an enviable track record of investing in institutions and prioritising macroeconomic stability.

It says Jamaica has met recent global shocks and natural disasters in a manner that is agile, prudent, and supportive of growth.

The Fund says GDP declined in the last fiscal year due to Hurricane Beryl and Tropical Storm Raphael, which damaged agriculture and infrastructure and undermined tourism.

Nonetheless, the IMF says economic activity is projected to normalise as these effects wane.

It highlights that unemployment has fallen to all-time low levels 3.7 percent in January 2025 and inflation has converged to the Bank of Jamaica, BOJ’s target band of four tp six percent.

The IMF says the outlook points to growth settling at its potential rate once the recovery is complete and with inflation stabilizing at the BOJ’s target range.

However, the Fund warns that global developments require continued close monitoring.

The multi-lateral says the Jamaican authorities continue to implement sound macroeconomic policies, aided by robust policy frameworks.

It says the current fiscal-monetary policy mix places Jamaica in a good position to respond to the various downside global risks, should they be realized.